2023 Sacramento Housing Market’s Biggest Challenge?
Affordability is the biggest challenge in 2023
ROSEVILLE, CA – I predict affordability will be the biggest challenge for homebuyers in 2023. Even small declines in prices and interest rates may not create buying power for the buyer. At the same time, homeowners considering selling may wait. Many have already locked lower mortgage rates, with little or no incentive to sell and buy again until rates are more favorable.
At the same time, we are seeing increased confidence in the housing market. Share of respondents in Fannie Mae The survey said now is the time to buy a home. This was still low, at just 21%, but it was up from 16% in October and November. And the share of consumers who said they were worried about losing their job in the next 12 months fell from 21 to 17 percent.
The housing market is usually slow during the winter, and with this year’s storms, some agents have reported a lack of activity. Pending home sales, which represent contracts signed on existing homes, fell in November, indicating that sales ending in January will also decline.
For sellers currently in the market, negotiation is the name of the game. to me Redfin, more than 40 percent of sellers made concessions to enter into a contract with a buyer. This is up from just over 30% in both the previous quarter and the fourth quarter of 2021 and is higher than the previous high of 40.8%, set during the three months ending July 2020, at the start of the Covid pandemic. It is higher than the previous high of 40.8%, recorded during the three months ending in July 2020, at the start of the Covid pandemic.
I think 2023 is going to be a good year for our housing market, but it feels like a cold winter.
If you have any questions about buying or selling a home in the current market, feel free to reach out to me at Magnum One Realty Office in Roseville at (916) 899-6571 by email to [email protected]. I will be happy to answer your questions.
We specialize in catering to buyers and sellers of homes in the Sacramento area including Sacramento, Placer, El Dorado, Sutter, and Yuba counties.